( 1 ) THE State Bank of India plaintiff is the appellant. The suit was filed for recovery of a sum of Rs. 3,90,760-19 paise against the borrower - 1st defendant and the guarantor - 2nd defendant. The 1st defendant was a firm carrying on business in tanned skins and hides. The plaintiff on execution of agreements by d-1, viz. , Exs. A-1, A-7, A-14 and A-15 and guarantee bonds by the surety D-2 viz. , Exs. A-2, A-9, A-16, A-21 and A-27 along with transfer endorsements in favouf of the plaintiff Bank on the promissory notes executed by D-1 in the name of D-2 by the 2nd defendant, viz. , Exs. A-3, A-8, A-15, A-20 and A-26 agreed to advance monies to the 1st defendant under five types of schemes namely (i) Cash credit (mundi type), (ii) Cash credit (lock and key), (iii) Outward bill overdraft, (iv) Clean Cash credit and (v)Cash credit (Mundi and packing type) the ceilings respectively being upto a limit of Rs. 60,000/- Rs. 40,000/- rs. 25,000/- Rs. 1,00,000/- and Rs. 1,00,000/ -. Thereafter, the accounts in respect of the five schemes viz. , Exs. A-6, A-13, A-19, A-24 and A-31 opened in some cases and continued in some others had their operation and ultimately by the date of the suit ther debit balances recoverable from the 1st defendant stood respectively at Rs. 71,388-85, Rs. 70,904-04, Rs. 22,774-08 Rs. 1,10,474-75 and rs. l,15,241-56, making the suit amount put together. Since inspite of notice the amount could not be recovered the suit happened to be instituted.

( 2 ) THE 1st defendant though filed a written statement remained ex-parte and therefore there was a decree passed against him for the suit amount as prayed for.

( 3 ) THE 2nd defendant guarantor however resisted the suit mainly by contending in the written statement that the advances made from time to time were in contravention of the terms of the agreement entered into that some of the account statements bring- in debit balances accrued for the period prior to the date of execution of the guarantee-bonds as well transfer endorsements made on the promissory notes in favour of the plaintiff for which he is not liable and that the contraventions and deviations from the agreed terms in the matter of making the advances had awefully impaired his rights and possibilities of recovering the sums from the 1st defendant and therefore he is discharged of his liability as surety. He accordingly prayed for dismissal of the suit.

( 4 ) BEFORE the trial Court the plaintiff examined the Manager of the Bank as p. W. I and marked Exs. A-1 to A-43 while the 2nd defendant examined one witness besides himself and also marked Ex. B-1 to B-9. On a consideration of the entire material on record the trial Court decreed the suit against the 2nd defendant only for a sum of Rs. 5,500/ -. Hence the present appeal for the balance amount.

( 5 ) THE learned counsel for the appellant contended that the defendants besides executing the agreements guarantee bonds and the transfer endorsements on the promissory notes have also written renewal letters exs. A-4,a-5, A-10, A-11, A-17, A-18, A-22, A-23, A-28 and A-29 undertaking their liability for the amounts due by the 1st defendant under the respective statements of account that there are no contraventions or deviations from the agreed terms, and that even if there are any such the same cannot discharge the liability of the guarantor, and therefore the plaintiff is entitled to a decree against the 2nd defendant for the full suit amount.

( 6 ) MR. Suryanarayana Rao, the learned counsel for the 2nd defendant firstly contended that the statements of accounts covered by Exs. A-6 and A-13 show even by 22-11-67 the corresponding date of execution of the guarantee bonds by d-2 viz. A-2 and A-9 and transferring the promissory notes Exs. A-3 and A-8 debit balances recoverable from the 1st defendant of Rs. 39,974-24 and rs. 9,989-10 paise and for those balances brought forward the 2nd defendant guarantor is not liable. In support of his contention